New Zealand dairy giant Fonterra announced on Saturday that tests of some ingredients used in infant formula and sports drinks have turned up a type of bacteria that could cause botulism, and customers were urgently checking their supply chains.
The company is the world’s fourth-largest dairy company, with annual revenues of about US$16 billion (HK124 billion).
The news comes as a blow to New Zealand’s dairy industry, which powers the country’s economy. New Zealand exports about 95 per cent of its milk.
Consumers in China and elsewhere are willing to pay a big premium for New Zealand infant formula because the country has a clean and healthy reputation. Chinese consumers have a special interest after tainted local milk formula killed six babies in 2008.
The Centers for Disease Control describes botulism as a rare but sometimes fatal paralytic illness caused by a nerve toxin.
Fonterra said it has told eight of its customers of the problem, which dates back more than a year, and they were investigating whether any of the affected product is in their supply chains. Fonterra said those companies will initiate any consumer product recalls.
At a news conference Saturday, Fonterra repeatedly refused to divulge the companies, countries or specific products affected. Gary Romano, the managing director of Fonterra’s New Zealand milk products, said his company supplies raw materials to the eight companies and it is up to them to inform their consumers of what products might be tainted.
